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THE IMPACT OF NEGATIVE ONLINE CONSUMER REVIEW AND BRAND AWARENESS
ON POTENTIAL CONSUMER PURCHASE INTENTION AT PRUDENTIAL INSURANCE
COMPANY IN MANADO
DAMPAK NEGATIF ONLINE CONSUMER REVIEW DAN BRAND AWARENESS TERHADAP NIAT
BELI CALON KONSUMEN PADA PERUSAHAAN ASURANSI PRUDENTIAL DI MANADO
By
Angelia Theresia Mandagi1
David P. E. Saerang2
Ferdinand J. Tumewu3
123
Management Department, Faculty of Economics and Business
Sam Ratulangi University, Manado
E-mail:
1
mandagiangel123321@gmail.com
2
davidsaerang@unsrat.ac.id
3
tumewufj@unsrat.ac.id
Abstract: Negative online consumer review and brand awareness plays an important role on potential consumer purchase
intention. Negative online consumer review fades overtime but the increasing of the brand awareness remind the same and
potential consumer tends to buy familiar and well-known product. This research examines the Impact of Negative Online
Consumer Review and Brand Awareness on Potential Consumer Purchase Intention at Prudential Insurance Company in
Manado. This research are using Quantitative Research Method with 100 samples and using Questionnaire data collection
technique, Negative Online Consumer Review and Brand Awareness stimultaneously have positive and significant effect
toward the Potential Consumer Purchase Intention at Prudential Insurance in Manado. Prudential needs to pay more attention
to all the negative online consumer review and the right way in responding to negative online consumer review is needed to
increase their potential consumer purchase intention.
Abstrak: Ulasan negatif konsumen online dan kesadaran merek memainkan peran penting pada niat beli konsumen potensial.
Ulasan konsumen online yang negatif memudar seiring waktu tetapi peningkatan kesadaran merek mengingatkan konsumen
yang sama dan calon konsumen cenderung membeli produk yang sudah dikenal dan terkenal. Penelitian ini mengkaji tentang
Pengaruh Negative Online Consumer Review dan Brand Awareness terhadap Potensi Minat Beli Konsumen Pada
Perusahaan Asuransi Prudential di Manado. Penelitian ini menggunakan Metode Penelitian Kuantitatif dengan 100 sampel
dan menggunakan teknik pengumpulan data Kuesioner, Negative Online Consumer Review dan Brand Awareness
berpengaruh positif dan signifikan terhadap Potensi Minat Beli Konsumen pada Asuransi Prudential Manado. Prudential
perlu lebih memperhatikan semua review negatif konsumen online dan cara yang tepat dalam merespon review negatif
konsumen online diperlukan untuk meningkatkan minat beli konsumen potensial mereka.
Kata Kunci: ulasan negative konsumen online, kesadaran merek, niat membeli
INTRODUCTION
Research Background
Presently, the use of the internet has been growing rapidly. Almost everything can be accessed via the
internet. Starting from personal information to general information can be accessed via the internet. For example
is the existence of an online review platform, where everyone is free to comment and share their experiences about
a product or service that they have tried. Providing reviews has become a habit of consumers if they are satisfied
or vice versa with the services or products provided. If the consumer is satisfied with the service or product
provided, the consumer will give a positive review of the service or product, but on the other hand, if the consumer
is not satisfied with the service or product provided, they will give a negative review of the service or product.
Research Objectives
The objectives in conducting this research are:
1. To identify the impact of negative online consumer review on the potential consumer purchase intention at
Prudential Insurance Company in Manado
2. To identify the impact of brand awareness on the potential consumer purchase intention at Prudential
Insurance Company in Manado
3. To indentify the impact of negative online consumer review and brand awareness on the potential consumer
purchase intention at Prudential Insurance Company in Manado
THEORETICAL FRAMEWORK
Marketing
According to Kotler and Armstrong (2010), marketing is the mechanism by which businesses generate
value for consumers and establish strong consumer relationships in order to capture value from them. The
definition of marketing according to terminology, comes from the word "market" which means a place where
buying and selling transactions occur or a place where sellers and buyers meet.
Purchase Intention
The eagerness of a consumer to purchase a specific good or a particular service is acknowledged as
intent to purchase (Patwary et al., 2018). Consumer purchase intention is how a consumer selects to buy after
elevates from several options. According to Ajzen (1985), intentions are assumed to capture the motivational
factors that influence a behavior, they are indications of how hard people are willing to try of how much an effort
they are planning to exert, in order to perform the behavior.
Brand Awareness
The importance of brand awareness supported by Berger, Sorensen and Rasmussen (2010) that stated
his findings on book sales found that although negative review hurt purchase of well-known books but for
unknown books that are affected by negative review, it actually increases purchase likehood. It happened because
the negative review fades overtime but increased awareness may remain, which can boost purchase likehood.
Previous Research
Zhao, Jiang and Su (2020) investigated how online seller responses to negative online review affect
potential consumers' distrust. This research find that apology works better when the alleged cause is relatively
unstable (e.g., competence-based negative review) and when the seller has a high ability to change. this research
show that it is better for the seller to defend its reputation. In addition, this research demonstrate that a remedial
action plan in the seller's response can reinforce the motivation to change communicated through apology.
Zhou, Liu and Tang (2013) examined how the sequence of negative reviews, the quantity of online
feedback text and the quality of online comments affect consumer purchase intention and product perception. The
investigation produces three findings: (1) the quality of online reviews has a positive effect on consumer purchase
intention and product perception, (2) purchase intention generally increases with the growth of the number of
reviews but the quantity of comments does not necessarily affect consumers’ product perceptions. (3) Consumers
show a negativity bias for products when negative consumer reviews concentrate in the front.
Berger, Surensen, and Rasmussen (2010) showed the beneficial effects of negative publicity, and further,
to delineate conditions under which negative publicity will have positive versus negative effects. Using a
combination of experimental methods and econometric analysis, this research demonstrate that the effect of
negative publicity depends on existing product awareness. This research is focused on product reviews, but similar
effects may also hold for other types of publicity such as word of mouth.
Conceptual Framework
𝑯𝟑
Research Hypothesis
H1= Negative consumer review partially impact the potential consumer purchase intention at Prudential Insurance
Company in Manado.
H2= Brand awareness partially impact the potential consumer purchase intention at Prudential Insurance Company
in Manado.
H3= Negative consumer review and brand awareness stimultaneously impact the potential consumer purchase
intention at Prudential Insurance Company in Manado.
Research Approach
This research will use quantitative research to analyze the impact of negative consumer review and brand
awareness on potential consumer purchase intention at Prudential Insurance Company in Manado. Quantitative
research is the measurement of quantitative data and objective statistics through scientific calculations derived
from a sample of people or residents who are asked to answer a number of questions about the survey to determine
the frequency and percentage of their responses.
Result
Validity Test
The purpose of validity test is to know whether the instrument is valid or not. The questionnaire is valid
if r count ≥ r table, and the questionnaire is not valid if r count ≤ r table. Based on r table (distribution value) with
significant level of 5% or α= 0,05 and the number of respondents (N) 100, the rtable value can be obtained at
0.195.
Variable Indicators Pearson Correlation Sig (2-tailed) N R table Status
Negative Consumer X1.1 0.287 0.004 100 0.195 VALID
Review (X1) X1.2 0.464 0.000 100 0.195 VALID
X1.3 0.412 0.000 100 0.195 VALID
X1.4 0.500 0.000 100 0.195 VALID
X1.5 0.529 0.000 100 0.195 VALID
X1.6 0.465 0.000 100 0.195 VALID
X1.7 0.549 0.000 100 0.195 VALID
X1.8 0.348 0.000 100 0.195 VALID
Brand Awarness X2.1 0.549 0.000 100 0.195 VALID
(X2) X2.2 0.552 0.000 100 0.195 VALID
X2.3 0.559 0.000 100 0.195 VALID
X2.4 0.608 0.000 100 0.195 VALID
X2,5 0.541 0.000 100 0.195 VALID
X2.6 0.478 0.000 100 0.195 VALID
X2.7 0.583 0.000 100 0.195 VALID
X2.8 0.436 0.000 100 0.195 VALID
X2.9 0.332 0.001 100 0.195 VALID
X2.10 0.403 0.000 100 0.195 VALID
X2.11 0.320 0.001 100 0.195 VALID
X2.12 0.405 0.000 100 0.195 VALID
X2.13 0.619 0.000 100 0.195 VALID
X2.14 0.604 0.000 100 0.195 VALID
Purchase Intention Y1 0.768 0.000 100 0.195 VALID
Y2 0.790 0.000 100 0.195 VALID
Y3 0.663 0.000 100 0.195 VALID
Y4 0.750 0.000 100 0.195 VALID
Y5 0.677 0.000 100 0.195 VALID
Y6 0.725 0.000 100 0.195 VALID
Y7 0.371 0.000 100 0.195 VALID
Y8 0.582 0.000 100 0.195 VALID
Y9 0.623 0.000 100 0.195 VALID
Source: SPSS Output, 2022
The output of SPSS shows that the value of Cronbach’s Alpha of 31 items used in this research is 0.853
The data is considered as reliable since the value of Cronbach’s Alpha is above the minimum value which is 0.6.
According to the result of normality test above, it can be concluded that the data of negative consumer
review, brand awarness, and purchase intention are more than 0.05 which means the data are distributed normally.
Heteroscedasticity Test
Variable Sig
Negative Consumer Review 0.715
Brand Awarness 0.623
Source: SPSS Output (2022)
The significant value of Negative Consumer Review (0.715) and Brand Awarness (0.623). All variables
have the significant value ≥ 0,05. Therefore, there is no heteroscedasticity.
Hypothesis Test
F-Test
ANOVAa
Model Sum of Squares Df Mean Square F Sig.
Regression 1215.864 2 607.932 27.959 .000b
Residual 2109.126 97 21.744
Total 3324.990 99
Source: SPSS Output (2022)
T-Test
Variable Tcount Ttable Sig. Status
1 Negative Consumer Review -2.119 1.98472 0.037 Accepted
2 Brand Awarness 7.137 1.98472 0.000 Accepted
Source: SPSS Output (2022)
Based on the Table that shows the t-test result, the variable independent X1 which is Negative Consumer
Review has tcount is 2,119 and ttable is 1,98472 means tcount > ttable or 2,119 >1,98472 with the significant level is
0,037, below than 0,05 and variable independent X2 has tcount is 7,137 and ttable is 1,98472 means tcount>ttable or
7,137>1,98472 with the significant level is 0,00, which is below than 0,05. For variable (X 1), it means that
Negative Consumer Review (X1) has significant impact on the Purchase Intention (Y) and Brand Awareness (X 2)
has significant impact on the Purchase Intention (Y). The H1 (first hypothesis) that states Negative Consumer
Review partially impact the Purchase Intention at Prudential Insurance Company in Manado is Accepted and The
H2 (second hypothesis) states the Brand Awarness (X 2) partially impact the Purchase Intention (Y) at Prudential
Insurance Company in Manado is Accepted.
Discussion
Negative Consumer Review on Potential Cosnumer Purchase Intention
In this study, it indicates that negative consumer review have impact the Purchase Intention. The data
showed that negative online consumer review have impact on Potential Consumer Purchase Intention. This is
supported by Berger, Sorensen and Rasmussen (2010), their findings on book sales indicate that unknown books
when affected by negative review, their purchase likehood even increases because the negative review fades
overtime but the increased brand awareness may remain which can led to the increasing of purchase likehood.
Prudential is a well-known company who have been successful in increasing their brand awareness, they do a lot
of promotions and advertisements through tv ads, banners or even through social media. Most of the respondents
that have been asked if they can recognize Prudential just by looking at its attributes answer agree and strongly
agree. This proves that Prudential have succeeded in building their brand awareness. The reviews from unsatisfied
consumer that went viral is also play an important role in increasing the brand awaremess. All the people that
previously have no idea about what Prudential is become knowing more about Prudential Company. They get to
know about the Company of Prudential, and what products they sell and also how the services provided by
Prudential, all of that happened for free without the need for more effort from Prudential. In this case, since
Prudential already have high brand awareness that is the reason why in this research the impact of negative
consumer review on potential consumer purchase intention at prudential insurance company in manado is negative
same as described by Berger, Sorensen and Rasmussen (2010).
Negative Consumer Review and Brand Awarness on Potential Consumer Purchase Intention
The last discussion, the researcher makes the hypothesis that the Negative Consumer Review and Brand
Awarness has stimultaneously impact the potential consumer at prudential insurance company in Manado. In this
case, the researcher in general found that brand awareness and purchase intention has connection with each other.
The more often the negative review appear the higher the brand awareness. Berger, Sorensen and Rasmussen
Conclusion
After doing the research and processing the data that has been collected with the aim of knowing the
impact of Negative Consumer Review and Brand Awarness on Potential consumer Purchase Intention at
Prudential Insurance Company in Manado, the research can draw the conclusion as follows:
1. Negative Consumer Review have partially impact the potential consumer Purchase Intention at Prudential
Insurance Company in Manado
2. Brand Awarness have partially impact the potential consumer Purchase Intention at Prudential Insurance
Company in Manado
3. Negative Consumer Review and Brand Awarness have simultaneously impact the potential consumer
Purchase Intention at Prudential Insurance Company in Manado
Recommendations
Based on the above conclusions from research on the effect of e-WOM, perceived quality, on purchase
intention, the researcher makes the following recommendations:
1. The company must aware with the negative consumer review, one of the way for the company to respond to
the negative reviews given by the consumers is to give feedback to the consumers as soon as possible in the
comment field, both directly related to the products offered and the services provided.
2. In order to minimize the negative reviews that are given by the consumers, company should use the social
media as a media to provide education to all the consumers and potential consumers out there to educate the
consumers to understand more about insurance and the terms and policies provided by the company so that
later there will be no problems due to misunderstandings between the consumer and the company itself.
3. Not only give education to the consumers through social media, the company must also pay attention to the
training for their agents, to minimize miscommunication between consumer or potential consumer and the
company itself in order to prevent consumers from feeling dissatisfied due to lack of understanding of the
terms and policies of insurance products.
4. This research can be used as a reference in the future study or research to develop or build new idea that can
be implemented and the researcher hopes that future researchers can expand on the limitations that have been
carried out by previous researchers.
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